OPEC raises world oil-demand forecast

ASTANA. KAZINFORM OPEC raised its forecast for global oil demand in 2017. It will reach 96 mb/d which is 0.04 mb/d up compared to the December MOMR, OPEC's January Monthly Oil Market Report reads.

In 2016 oil demand totaled 94.44 mb/d up from the December MOMR of 94.41 mb/d. Thus, in 2017 global oil demand will rise by 1.6 mb/d (previously growth by 1.15 mb/d was expected), RIA Novosti reports.

Improved forecast is related to a higher oil demand in European OECD countries, due to expectations of colder weather and higher fuel demand.

Demand for OPEC oil in 2017 will rise compared to 2016 by 0.9 mb/d to 32.1 mb/d. December MOMR projected a rise by 0.7 mb/d to 32.6 mb/d.

In 2017, non-OPEC oil supply is projected to grow by 0.12 mb/d, following a downward revision of 0.18 mb/d to average 57.26 mb/d, partially due to the planned production adjustments in 1H17 in line with OPEC - non-OPEC cooperation. However, the US forecast for 2017 was revised up by 0.23 mb/d, following higher rig counts and stronger cash flows," says the report.